KUALA LUMPUR: The payment trend to creditors showed a recovery in the third and fourth quarters of last year, according to the Trade Bureau platform of Experian Information Services (Malaysia).
Chief executive officer Dawn Lai said this positive trend was likely due to most of the Malaysian economy re-opening post the movement control order (MCO) and business activity resuming to some normalcy since June 2020.
“This, coupled with the government’s ongoing implementation of the Prihatin and Penjana economic stimulus packages, have contributed to enhanced business activity which has helped boost market confidence, ” she said in a statement yesterday.
The statement was issued in conjunction with Experian Malaysia’s release of its latest Industry Debts Turned Cash (i-DTC) indicators, which measured payment data from the first quarter of 2019 to fourth quarter of 2020.
KUALA LUMPUR (Jan 14): The average number of days Malaysian companies take to pay their creditors recovered in the third and fourth quarters of 2020 (3Q and 4Q20), according to Experian Information Services Malaysia.
In its ‘Industry Debts Turned Cash’ Indicators (i-DTC) on payment trends in 2019 and 2020 released today, Experian said in this study, seven selected industries of construction, hospitality and food/beverage, manufacturing, retail, services, transportation and storage, and wholesale were examined.
It said i-DTC measures the average number of days companies take to pay their creditors after the invoice date.
The firm the study is based on more than 500,000 payment records on business corporations and SMEs across a spectrum of industries facilitating a clearer picture of how fast companies are paying their creditors.